Today, Optima Tax Relief Lead Tax Attorney, Phil, discusses each of the three IRS 6-year rules. Underreporting Income by Over 25% If you underreport your income by over 25%, the IRS has six years from the date the return was filed to assess additional taxes, instead of the usual three years. The 25% threshold is […]
Tax Deductions for Senior Citizens
Figuring out taxes in retirement can be challenging, but understanding available tax deductions can significantly impact your financial health. Senior citizens have access to a variety of tax benefits and deductions that can help reduce taxable income and enhance savings. Here’s a comprehensive guide to the key tax deductions and credits available to senior citizens. […]
What is the Foreign Tax Credit?
As globalization continues to connect economies and individuals around the world, many U.S. taxpayers find themselves earning income in foreign countries. This income often comes with the obligation to pay foreign taxes, leading to a complex situation where individuals and businesses may face double taxation. Double taxation is when a taxpayer pays taxes on the […]
What is Schedule B?
When filing U.S. federal income tax, taxpayers often encounter several forms and schedules that must be completed to accurately report their financial activities. One such form is Schedule B, which is used to report interest and ordinary dividends. Understanding this form is crucial for taxpayers with investment income to ensure compliance with tax laws and […]
What is the Federal Disaster Tax Relief Act?
The Federal Disaster Tax Relief Act is a legislative measure proposed by the U.S. Congress to provide tax relief and assistance to individuals and businesses affected by natural disasters. This Act is part of a broader effort by the federal government to alleviate the financial burden on those impacted by disasters such as hurricanes, wildfires, […]
Ask Phil: What is an OIC Mill?
Today, Optima Tax Relief Lead Tax Attorney, Phil, discusses OIC mills, including what they are and how to avoid being victimized by them. What is an OIC? An Offer in Compromise (OIC) is a program offered by the IRS that allows taxpayers to settle their tax debt for less than the full amount owed. This […]
What Is an IRS Administrative Appeal?
If you’ve been hit with an assessment from the IRS and you disagree with the results, you are entitled to present your case in Tax Court. However, an IRS administrative appeal may produce desirable results without the need to go to court. As a taxpayer, you are entitled to dispute the results of an IRS […]
What Happens if I Default on My IRS Installment Agreement?
Entering into an installment agreement with the IRS can provide taxpayers with a manageable way to pay off their tax liability over time. However, defaulting on an IRS installment agreement can lead to serious consequences. Here, we’ll review the potential repercussions and the steps you can take to mitigate them. What Does it Mean to […]
Can I Amend My Tax Return?
Did you make a mistake on your tax return? Whether it’s to correct errors, claim overlooked deductions, or address changes in filing status, it may be best to amend your tax return. CEO David King and Lead Tax Attorney Philip Hwang provide helpful tips on what important facts you need to know before amending your […]
Am I Responsible for My Spouse’s Back Taxes?
When you marry, you often share many aspects of your life with your spouse: your home, your finances, and perhaps even your dreams. However, what happens when it comes to tax liabilities? Specifically, are you responsible for your spouse’s back taxes? This question can cause significant stress and confusion. To navigate this issue, it is […]